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PORTLAND, Ore.--(BUSINESS WIRE)--July 22, 2004--FLIR Systems, Inc.
(Nasdaq:FLIR) announced today that revenue for the second quarter
ended June 30, 2004 increased 59% to $119.3 million from $75.2 million
for the second quarter of 2003. Excluding the impact of the Indigo
Systems Corporation acquisition, which closed on January 6, 2004,
revenue for the second quarter increased 37%. Earnings from operations
increased 75% to $27.2 million, or 23% of revenue, compared with $15.6
million, or 21% of revenue, for the second quarter of 2003. Net
earnings for this year's second quarter increased 85% to $17.9
million, or $0.50 per diluted share compared to net earnings for the
second quarter of 2003 of $9.7 million, or $0.27 per diluted share. For the first six months of 2004, revenue increased 58% to $228.2
million from $144.3 million for the same period last year. Excluding
the impact of the Indigo acquisition, revenue for the first six months
of 2004 increased 37%. Earnings from operations for the first six
months of 2004 increased 67% to $49.1 million, or 22% of revenue, from
$29.4 million, or 20% of revenue, for the first six months of 2003.
Net earnings increased 62% to $30.6 million, or $0.87 per diluted
share, compared to net earnings of $18.9 million, or $0.52 per diluted
share, for the first six months of 2003. Revenue from the sale of the Company's Thermography products
increased 37% over the second quarter last year, primarily due to
growth in demand from new markets such as building inspection and
continued strength in traditional predictive and preventive
maintenance markets. Excluding the impact of the Indigo acquisition,
Thermography revenue rose 24% for the second quarter. Revenue from the sale of the Company's Imaging products increased
72% in the second quarter, reflecting strength across virtually all
product lines. Excluding the impact of the Indigo acquisition, Imaging
revenue rose 45% for the second quarter. The backlog of orders for delivery within the next twelve months
was approximately $183 million at June 30, 2004, compared to $180
million at March 31, 2004. Cash generated from operations totaled $20 million for the second
quarter of 2004, and $39 million for the first six months. At June 30,
2004, the Company had cash and cash equivalents of $67 million. Earl Lewis, President and CEO, stated, "I am extremely pleased
with our financial performance in the second quarter. All of our
businesses are performing well, and our manufacturing facilities were
able to keep pace with very strong order intake and achieve record
revenue and operating profit. Our margins are again trending up, and
our cash flow has been very good. I am confident we will see continued
strong financial results for the remainder of 2004, so we are
increasing both revenue and earning per share guidance for the year." Revenue and Earnings Guidance for 2003 The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially. Based on its financial results for the first six months of 2004,
and the outlook for the remainder of the year, management currently
expects revenue for 2004 to be approximately $470 million to $480
million and net earnings in the range of approximately $1.88 to $1.98
per diluted share, with an estimated effective tax rate of 29%. This
compares with management's previous expectations for 2004 of revenue
of $425 million to $435 million and earnings per share of $1.55 to
$1.60. Forward-Looking Statements The statements in this release by Earl R. Lewis and the statements
in the Revenue and Earnings Guidance for 2004 above are
forward-looking statements. Such statements are based on current
expectations, estimates and projections about the Company's business
based, in part, on assumptions made by management. These statements
are not guarantees of future performance and involve risks and
uncertainties that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements due to numerous factors,
including the following: changes in demand for the Company's products,
product mix, the timing of customer orders and deliveries, the impact
of competitive products and pricing, the Company's continuing
compliance with US export control laws and regulations, constraints on
supplies of critical components, excess or shortage of production
capacity, actual purchases under agreements, the continuing
eligibility of the Company to act as a federal contractor, the amount
and availability of appropriated government procurement funds and
other risks discussed from time to time in the Company's Securities
and Exchange Commission filings and reports. In addition, such
statements could be affected by general industry and market conditions
and growth rates, and general domestic and international economic
conditions. Such forward-looking statements speak only as of the date
on which they are made and the company does not undertake any
obligation to update any forward-looking statement to reflect events
or circumstances after the date of this release. Conference Call FLIR has scheduled a conference call at 11:00 a.m. EDT today. A
simultaneous webcast of the conference call may be accessed online
from the Calendar of Events link at the investor relations page of
www.FLIR.com. A replay will be available approximately one hour after
the webcast at these same Internet addresses. For a telephone replay,
dial 800-633-8284, reservation #21200423 after approximately 1:00
p.m. EDT. About FLIR Systems FLIR Systems, Inc. is a world leader in the design, manufacture
and marketing of thermal imaging and stabilized camera systems for a
wide variety of thermography and imaging applications including
condition monitoring, research and development, manufacturing process
control, airborne observation and broadcast, search and rescue, drug
interdiction, surveillance and reconnaissance, navigation safety,
border and maritime patrol, environmental monitoring and ground-based
security. Visit the company's web site at www.FLIR.com. FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenue $119,295 $75,162 $228,156 $144,333
Cost of goods sold 58,271 36,041 113,712 69,169
Gross profit 61,024 39,121 114,444 75,164
Operating expenses:
Research and development 10,784 7,785 21,382 15,383
Selling, general and
administrative 23,026 15,749 43,986 30,385
Total operating expenses 33,810 23,534 65,368 45,768
Earnings from operations 27,214 15,587 49,076 29,396
Interest expense 2,006 530 4,107 789
Other expenses (income), net (224) 557 608 450
Earnings before income taxes 25,432 14,500 44,361 28,157
Income tax provision 7,506 4,785 13,752 9,292
Net earnings $17,926 $9,715 $30,609 $18,865
Net earnings per share:
Basic $0.53 $0.28 $0.92 $0.55
Diluted $ 0.50 $ 0.27 $ 0.87 $ 0.52
Weighted average shares
outstanding:
Basic 33,602 34,492 33,407 34,579
Diluted 35,619 35,945 35,367 36,020
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
June 30, December
31,
2004 2003
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $67,003 $197,993
Accounts receivable, net 89,056 79,332
Inventories, net 86,915 75,959
Prepaid expenses and other current assets 19,880 19,997
Deferred income taxes 9,908 8,832
Total current assets 272,762 382,113
Property and equipment, net 31,887 22,758
Deferred income taxes, net 6,500 21,146
Goodwill 149,475 12,500
Intangible assets, net 49,991 4,036
Other assets 8,887 7,870
$519,502 $450,423
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $29,083 $26,427
Deferred revenue 5,075 4,540
Accrued payroll and related liabilities 14,664 12,778
Accrued product warranties 5,031 3,511
Advance payments from customers 8,531 12,112
Other current liabilities 10,456 8,227
Accrued income taxes 194 2,742
Current portion of long-term debt 128 --
Total current liabilities 73,162 70,337
Long-term debt 204,950 204,369
Pension and other long-term liabilities 11,332 10,875
Commitments and contingencies
Shareholder's equity 230,058 164,842
$519,502 $450,423
CONTACT: FLIR Systems, Inc.
Anthony Trunzo, 503-684-3731
www.flir.com
or
Neil Berkman Associates (Investor Contact)
310-277-5162
info@BerkmanAssociates.com
SOURCE: FLIR Systems, Inc.
